Sensex drops over 200 points, Nifty50 slides below 17,850; Infosys rises, HCL Tech falls
Indian equity benchmarks Sensex and Nifty50 gave up initial gains soon after a positive start on Friday amid choppy trade. Reliance and HDFC Bank were the biggest drags on both main gauges, accounting for almost 100 points in the fall in Sensex.
Indian equity benchmarks Sensex and Nifty50 gave up initial gains amid choppy trade on Friday, even as global markets strengthened after data showed inflation eased in the world's largest economy, taking away some of the concerns about steep hikes in interest rates.
Both indices failed to stay in the positive zone in early deals after opening about 0.1 per cent higher. The Sensex fell as much as 217.9 points or 0.4 per cent to 59,740.2 in the first few minutes of trade, and the Nifty slid to as low as 17,802.1, down 56.2 points or 0.3 per cent from its previous close.
At 9:27 am, the Sensex was down 213.9 points or 0.4 per cent at 59,744.2 and the 50-scrip index at 17,818.1, down 40.1 points or 0.2 per cent from its previous close.
An equal number of stocks strengthened and weakened in the Nifty basket. UltraTech, Adani Enterprises, IndusInd Bank, Tata Steel, PowerGrid, NTPC, UPL and ONGC were the top gainers, rising between 0.5 per cent and 0.8 per cent. On the other hand, HCL Tech, Larsen & Toubro, Eicher, Tech Mahindra, Sun Pharmar, Apollo Hospitals and Reliance -- down between 0.8 per cent and 1.9 per cent -- were the top laggards.
Reliance and HDFC Bank were the biggest drags on both main gauges, accounting for almost 100 points in the fall in Sensex.
The Nifty IT -- whose 10 constituents include TCS, Infosys, HCL Tech, Wipro and Tech Mahindra -- declined a day after Infosys and HCL Tech reported their financial results for the October-December period. Infosys raised and HCL Tech trimmed the revenue guidance for the year ending March 2023.
Overall market breadth favoured the bulls, as 1,708 stocks rose and 1,024 fell on BSE.
"There are significant near-term positives for equity markets. Globally, the decline in US inflation and the consequent decline in US 10-year bond yields are supportive of markets. The dollar index dipping below 103 is positive for emerging market equities. Sustained selling by FIIs in India is likely to abate going forward," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The RBI can now afford to soften rate hikes, he added.
The emerging interest rate scenario is favourable for banks and NBFCs. The impressive Q3 results from IT majors will keep the IT segment resilient.
Global markets
Equities in other Asian markets began the day in the green, with MSCI's broadest index of Asia Pacific shares outside Japan rising 0.5 per cent at the last count.
S&P 500 futures were down 0.2 per cent, suggesting a muted start ahead on Wall Street. On Thursday, the S&P 500 finished 0.3 per cent higher, and the Dow Jones and the tech stocks-heavy Nasdaq Composite gained 0.6 per cent each, after the US inflation reading supported expectations of less aggressive rate hikes from the Fed.
Catch all about IT results: from TCS to Infosys to HCL Tech. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PM Modi has invested in this post office scheme; know his total worth as per Lok Sabha elections 2024 affidavit
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
09:54 AM IST